Property Valuation and Taxes

Arizona has a two-tiered property tax system consisting of a Limited Primary Value (LPV) and a secondary Full Cash Value (FCV):

Limited Primary Value (LPV) is a value determined by a statutory formula mandated by the Arizona State Legislature. LPV is limited in the amount of increase in any given year and cannot exceed the property’s Full Cash Value.

Secondary Full Cash Value (FCV) is a reflection of the Assessor’s estimate of the true market value of a property.

How are my property taxes calculated?

Beginning with tax year 2015, the LPV is utilized to calculate property taxes with the exception of Personal Property (excluding mobile homes) and centrally valued properties identified in A.R.S. § 42-12001(1) thru (7) and (11).

Primary and secondary property taxes are calculated from the LPV. The LPV is multiplied by an assessment ratio to reach the property’s assessed valuations (AVs); the assessment ratio for residential properties is 10%. Primary and secondary property taxes are then calculated per every $100 of a property’s AV.

For example, in tax year 2016 (Goodyear’s fiscal year 16-17) a Goodyear home had a LPV of $116,424. To calculate property taxes paid:

The LPV of $116,424 would be multiplied by 10% to reach the AV of $11,642

Primary and secondary property taxes would then be paid on every $100 of this AV amount ($11,642 / 100 = $116.42)

Multiply $116.42 by the property tax rate to reach the primary and secondary property taxes paid

It should be noted that values listed in one tax year will be used in the jurisdictions’ following fiscal year (FY) budgets. For example, property taxes based off of AVs in tax year 2016 are used in the City’s FY 16-17 budget. See the Maricopa County Assessor’s website for more information on property tax calculations and to locate more details on your property.

What is the difference between a tax levy and a tax rate?

A tax levy is the entire amount of money to be raised by direct taxation as reported by each district. A tax rate is the property tax charged per $100 of assessed value (AV) to arrive at the levy. Each taxing jurisdiction will set their budgets on an annual basis and these budgets will be used to determine the necessary tax levy and tax rate for each district.

Where do my property taxes go?

For Goodyear residents, the majority of property taxes paid go directly to education. Other government agencies receiving a portion of your property tax dollars include Maricopa County, the City of Goodyear, and various special districts. Your property tax bill lists each agency’s tax rate and the exact amount that each agency receives. Visit the Maricopa County Treasurer’s Office for information on reading and understanding your tax bill.

The chart below is based on average property taxes paid by Goodyear residents.

How does the City calculate its property tax rate?

Each year the Council approves the levy during the budget process based on the amount needed to make debt payments and fund basic services. This levy then establishes the property tax rates. Other agencies collecting property taxes follow a similar procedure.

How does the City use my property tax dollars?

Primary property taxes provide general funds for basic governmental services like Public Safety, Parks & Recreation, street maintenance, and administration. Primary property taxes comprise approximately 10% of the City’s general fund revenues. Secondary property taxes provide funding for voter-approved bonds which fund construction of public facilities and infrastructure. These two rates together comprise the City’s total property tax rate. The limited property value used to calculate primary and secondary taxes is limited to a 5% increase per year mandated by Arizona state statute.

Why are my property taxes different from someone else who lives in Goodyear?

Differing property values, as established by the Maricopa County Assessor, may be part of the reason. Additionally, within Goodyear there are a number of different school districts and special districts that can lead to wide variances in property tax bills. Within the city of Goodyear alone the following education and special districts can lead to variations in property tax bills: